Collectibles Tax Rates
The IRS taxes long-term capital gains on collectibles at a maximum rate of 28% — significantly higher than the 15% or 20% rates that apply to most long-term capital gains on stocks and real estate. Collectibles include art, antiques, gems, stamps, coins, wine, and precious metals (gold, silver, platinum bullion and coins). Add the 3.8% Net Investment Income Tax for high earners and the maximum combined federal rate on collectible gains reaches 31.8%. This higher rate reflects a policy choice that gains on "passive" assets like rare art or wine should bear more tax than gains on productive investments, though critics argue it's an arbitrary distinction that discourages investment in cultural assets. The definition of "collectibles" has some surprising edges: cryptocurrency is NOT a collectible (it's property taxed under the capital gains rules), but certain gold and silver coins and ETFs holding physical precious metals (like GLD) are — meaning gold ETF investors in higher brackets can face 28% tax on gains rather than the 20% long-term capital gains rate. If you're selling valuable items from an estate or collection, the 28% collectibles rate affects the after-tax calculus of timing and structuring the sale.
Current Law (2026)
Long-term capital gains on collectibles are taxed at a maximum rate of 28% (vs. 20% for most other long-term capital gains).
| Parameter | Value |
|---|---|
| Maximum LTCG rate on collectibles | 28% |
| Plus NIIT (if applicable) | 3.8% |
| Maximum effective rate | 31.8% |
| Short-term rate | Ordinary income (up to 37% + 3.8% NIIT) |
Legal Authority
- 26 U.S.C. § 1(h) — Special rate for collectibles gain
- 26 U.S.C. § 408(m) — Investment in collectibles treated as distributions
How It Works
The 28% rate applies to a defined list of collectibles under 26 U.S.C. § 1(h): art, antiques, gems, stamps, coins, rugs, precious metals (gold, silver, platinum bullion and coins), alcoholic beverages, and any other tangible personal property the IRS designates. The list has a consequential edge most investors miss: physical gold and silver ETFs (GLD, SLV, IAU) are taxed as collectibles because they hold physical bullion — not because they're managed funds. A $10,000 long-term gain on a gold ETF in the 15% LTCG bracket costs $2,800 in federal tax; the same gain on a stock ETF costs $1,500 — an 87% higher tax bill on the same dollar of profit. The 3.8% NIIT applies on top of the 28% for taxpayers above the $200,000/$250,000 MAGI thresholds, bringing the maximum combined federal rate to 31.8%.
Not all gold-related investments trigger the collectibles rate. Gold mining company stocks (Barrick, Newmont, GDX ETF) are equities taxed at the ordinary 15%/20% long-term capital gains rates. Approved coins and bullion held inside an IRA are exempt under 26 U.S.C. § 408(m)(3) — they grow tax-deferred and are taxed as ordinary income on distribution, not at collectibles rates. For investors with significant precious metals positions, placing them in a Roth IRA achieves tax-free growth and withdrawal, entirely bypassing the 28% collectibles rate. (Most other collectibles cannot legally be held in an IRA at all; placing prohibited collectibles in a self-directed IRA triggers an immediate deemed distribution taxable as ordinary income.)
The 28% maximum rate applies regardless of income bracket — unlike regular LTCG rates, there is no 0% bracket for lower-income taxpayers on collectibles. Installment sales of collectibles don't escape the rate either: gain recognized in each installment year remains subject to the 28% maximum, so spreading payments across years changes only the timing, not the rate. Short-term gains (holding period one year or less) are taxed as ordinary income at up to 37% — higher than the 28% collectibles rate — so the 28% applies only to long-term gains. The 28% ceiling also means taxpayers in the 32%, 35%, or 37% ordinary income bracket actually pay less on long-term collectibles gains than their marginal rate would suggest; their rate is capped at 28%.
How It Affects You
If you hold gold or silver investments: Physical gold and silver — plus ETFs that hold physical bullion (GLD, IAU, SLV) — are taxed as collectibles at a maximum rate of 28% on long-term gains, rather than the 15-20% that applies to most other long-term capital gains. Gold prices reached historic highs in 2024-25 above $3,000/oz, making this rate difference consequential for investors with significant gains. A $10,000 long-term gain on a gold ETF in the 15% LTCG bracket costs $2,800 in federal tax; the same gain on a stock ETF costs $1,500. For high earners, add 3.8% NIIT on top. Tax-advantaged alternatives: hold gold ETFs in a Roth IRA (tax-free growth and withdrawal) or gold mining company stocks (classified as equity, taxed at regular LTCG rates).
If you collect art, antiques, gems, or stamps: Long-term gains on collectibles are taxed at 28% regardless of your ordinary income bracket — there's no 0% bracket for low earners on collectibles (the 0% rate that applies to regular LTCG doesn't apply). If you're planning to sell appreciated art or other collectibles, consider: (1) donating appreciated collectibles to a public charity and taking a fair market value deduction (subject to 30% AGI limit) — you avoid the 28% gain entirely; (2) installment sales to spread the gain over multiple years; (3) holding until death (step-up in basis). An art collection with significant unrealized gains is a meaningful estate planning asset.
If you hold NFTs: IRS Notice 2023-27 announced the IRS will treat certain NFTs as collectibles subject to the 28% rate using a "look-through" test — if the NFT represents a right to an underlying collectible (art, gems, alcoholic beverages), the NFT itself is taxed as a collectible. For NFT holders with significant long-term gains, this distinction means a potential 13-percentage-point rate difference (28% vs. 15%) plus 3.8% NIIT for high earners. The IRS has signaled further guidance is coming. Until clearer rules emerge, model collectibles treatment for any NFT representing art or luxury goods.
If you're evaluating a gold ETF vs. a gold mining stock: The tax treatment differs significantly. Gold ETFs holding physical bullion are collectibles (28% max rate); gold mining company stocks (Barrick, Newmont, GDX ETF) are equities taxed at regular LTCG rates (15-20%). A mining stock also provides leverage to gold prices (mining costs are relatively fixed, so profit margins expand disproportionately as gold prices rise), while bullion ETFs track the commodity price directly. For tax-efficient gold exposure in a taxable account, gold mining stocks are significantly more favorable — the performance and risk characteristics are different, but the tax treatment is substantially better.
State Variations
States generally tax collectibles gains at ordinary income rates (same as other capital gains in most states).
Implementing Regulations
Collectibles gain regulations are in 26 CFR SS 1.1(h)-1 (capital gains look-through rules, including 28% rate treatment for collectibles gains) and SS 1.408-10 (prohibited IRA investments in collectibles).
Pending Legislation
- HR 1857 (Rep. Davidson, R-OH) — Capital Gains Inflation Relief Act of 2025: would index long-term capital gains bases for inflation on stocks, crypto, and business property (does not specifically address the 28% collectibles rate, but would affect crypto-related collectibles). Status: Introduced.
- S 798 (Sen. Cruz, R-TX) — Capital Gains Inflation Relief Act of 2025: Senate companion indexing long-term gains for inflation. Status: Introduced.
No 119th Congress bills directly targeting the 28% collectibles rate.
Recent Developments
- IRS Notice 2023-27 — NFTs classified as collectibles: In March 2023, the IRS issued Notice 2023-27 announcing it would treat certain non-fungible tokens (NFTs) as collectibles subject to the 28% maximum capital gains rate (rather than the 15-20% rate applicable to most long-term capital gains). The notice uses a "look-through" test: if an NFT represents a right to a collectible (art, gems, alcoholic beverages), it's treated as a collectible itself. The IRS has indicated further guidance is coming. For NFT holders with significant long-term gains, this distinction can mean a 13-percentage-point rate difference (28% vs. 15%) — plus 3.8% NIIT for high earners.
- Gold prices at historic highs — 28% rate more impactful: Gold prices reached historic highs in 2024-25, with gold briefly exceeding $3,000/oz. For investors who purchased gold or gold ETFs (GLD, IAU) years ago at lower prices, the 28% collectibles rate applies to those gains rather than the 15-20% LTCG rate. A $10,000 gain on gold ETF holdings in the 15% LTCG bracket costs $2,800 in federal tax; the same gain on a stock ETF costs $1,500. This rate differential makes tax-advantaged holding vehicles (Roth IRA, HSA where applicable) significantly more valuable for precious metals positions.
- No legislative changes to the 28% rate: The 28% collectibles rate has been in place since the Taxpayer Relief Act of 1997. No bills in the 119th Congress directly target the collectibles rate — the capital gains inflation indexing proposals (HR 1857, S 798) cover stocks, crypto, and business property but do not specifically address collectibles. The rate appears stable for the foreseeable future.
- Crypto-as-collectibles risk: There is ongoing regulatory and legislative debate about whether certain cryptocurrencies (particularly proof-of-stake tokens, NFTs, and other non-currency digital assets) should be classified as collectibles under IRC § 408(m) or similar provisions. If applied, this would raise the maximum rate on some crypto gains from 20% to 28%. Crypto holders should monitor IRS guidance and any enacted legislation carefully.
- OBBBA and TCJA extension — no collectibles rate change (2025): The One Big Beautiful Bill Act (OBBBA), the 2025 Republican reconciliation package, extends TCJA income tax provisions but does not change the 28% collectibles rate. The TCJA-set ordinary income brackets — which cap the collectibles rate at 28% regardless of the investor's actual top bracket — are extended. The Trump IRS has deprioritized enforcement innovation but continues FATCA cross-referencing for offshore collectibles holdings. Gold continues to trade above $3,000/oz in 2025; investors realizing large gains on long-held physical gold face the 28% rate vs. 15-20% on stock gains, reinforcing the planning case for Roth conversions and tax-advantaged accounts for precious metals.